Delhi RERA launches its portal
Delhi RERA launched its portal and resolved nearly 25 of the 70 complaints filed so far. The numbers, though low, instill hopes of improved execution of RERA in future. Meanwhile, Haryana RERA has reportedly resolved over 55 percent of the complaints filed till now.
Dwarka Expressway inches closer to completion
The much-awaited Dwarka Expressway project inched ahead with Gurugram Metropolitan Development Authority (GMDA) razing all 20 structures near Kherki Daula village. With this, just one factory stands in the way of completion of the stretch now, which has been pending for over a decade.
Infrastructure projects in the offing
While the progress towards Jewar Airport continued unabatedly, plans were rolled to redevelop the Noida-Greater Noida Expressway and link Greater Noida with Delhi via a metro route. The soon-to-belaunched Grey line of Delhi Metro connecting Dwarka to Najafgarh, coupled with several other road projects, promises improved housing demand in the time to come.
NBCC plans to acquire stuck realty projects
The National Buildings Construction Corporation Limited (NBCC) placed a bid to acquire Jaypee Infratech in Noida, which is currently going through the corporate insolvency process. The move augured well for the distraught homebuyers and the residential market of the region.
DDA to launch Master Plan 2041 for citizen feedback
The Delhi Development Authority plans to launch the Master Plan 2041 online and seek suggestions from citizens. The plan focuses on unauthorised constructions in the city. The Greater Noida Industrial Development Authority (GNIDA) is also set to formulate its Master Plan 2041, and focuses on expanding its urban area in 180 villages.
- Delhi Real Estate Market
- Noida-Greater Noida Real Estate Market
- Gurgaon and Faridabad Real Estate Market
Real estate in Delhi NCR thrived Q2 2019 majorly on the back of the growth inducers from the previous quarter. The addition of over 6,000 housing units in Jan-Mar 2019 in the prime residential markets paved the way for robust enquiries in the current quarter. With over 85 percent of the new launches falling in the affordable and mid-income categories, developers seemingly hit the bull’s eye and drove longtime fence-sitters to start visiting the sites. Property prices, however, remained unchanged owing to the staggering unsold inventory, which currently stands at around 1.80 lakh units, amounting to about 45 months of overhang.
A nearly 70 percent hike in new launches, YoY, hinted at the reviving sector in Delhi NCR. However, the majority of these new projects clustered around a few high-activity corridors such as Dwarka Expressway, Sohna Road, New Gurgaon, and Noida-Greater Noida Expressway. Progress toward infrastructure projects played a crucial role in maintaining the interest of buyers and developers in these clusters. Dwarka Expressway, for instance, cleared a major hurdle towards its completion in the quarter. The plan to overhaul the Noida-Greater Noida Expressway, too, came as a welcome move. While the fast-paced execution of the Jewar Airport kept investor interest alive in the Noida-Greater Noida belt, price-competitiveness helped New Gurgaon emerge popular among end-users.
With NBCC planning to take over one of the major distressed projects in Noida, buyer sentiment is likely to improve. RERA, in such a case, would play a pivotal role. While UP and Haryana RERA authorities are going headstrong in making real estate transactions transparent in their respective regions, it is essential that Delhi RERA, too, takes the baton ahead in the ensuing quarters.
NOIDA, GREATER NOIDA AND GHAZIABAD
The realty landscape in Noida and Greater Noida remained largely stable in Apr-Jun 2019, despite an improvement in the home buying sentiment, following the NBCC’s decision to take over stalled projects. Metro expansion plans did little to boost housing sales or prices in the two regions. Property rates in Ghaziabad maintained status quo as sales and enquiries remained stable in the quarter ending June 2019.
Even as property enquiries posted a significant 30 percent improvement, QoQ, sale conversions remained restricted in Noida and Greater Noida in Apr-Jun 2019. The resale and the ready-to-move categories remained at the forefront as under-construction units continued to suffer due to possession delays. Currently, from the two lakh delayed housing units in Delhi NCR, over a lakh are in Greater Noida, followed by Noida with nearly 44,000 such units.
While properties priced within Rs 60 lakh stayed popular among both buyers and developers, the premium housing segment witnessed a fresh lease of life this quarter. Several Category A developers such as ATS Greens, Prateek Group and Mahagun Builders launched new projects offering homes priced above Rs 1 crore, in and around Sector 150, Noida. The area gained prominence post the launch of the Aqua metro line. The upcoming Jewar Airport is also playing a key role in pushing housing demand in the region.
Connectivity by the Aqua metro line proved to be a game-changer for several other locations such as Sectors 81, 93A, 137, and 168 in Noida, and Sector Zeta in Greater Noida. All these areas reported a hike in the average weighted capital ‘asks’ to the tune of 1-3 percent, QoQ. The proposed metro connectivity between Delhi and Greater Noida is anticipated to further bolster realty sentiment in these micro-markets.
In Ghaziabad, Raj Nagar Extension emerged as the top performer with three percent upsurge in the capital ‘asks’, QoQ. The signal free elevated approach via the NH-24 and the new-found metro connectivity via the Red line propelled home buying sentiment in the region.
The rental market in Noida and Greater Noida maintained status quo as excess inventory continued to keep prices under check. Ghaziabad, however, witnessed a two percent decline in the average weighted rental ‘asks’, YoY.
The UP RERA’s move to deregister six Noida-based builders for defaulting on project deliveries instilled high confidence amongst the homebuyers in Noida, Greater Noida and Ghaziabad. Faster resolution of distressed projects is the next huge impetus that these markets await.
GURGAON AND FARIDABAD
While property rates in Faridabad corrected by a percent, those in Gurgaon maintained status quo in Apr-Jun 2019 against Jan-Mar 2019 as enquiries and sales plateaued in the face of the General Elections. Developers held new launches and awaited clarity over the revised GST regime. The focus remained on offloading the existing stock; however, at about 53,000 units, unsold inventory stood slightly higher in Gurgaon from the previous quarter.
The quarter ending June 2019 was testimony to an improved home buying sentiment in Gurgaon, triggered by Haryana RERA’s efficient functioning, the addition of around 8,500 housing units between January and May 2019, infrastructural overhauls and availability of new residential stock priced within Rs 75 lakh. However, a reduced number of enquiries and sales led to unchanged property prices in Apr-Jun 2019, vis-à-vis Jan-Mar 2019.
In line with the previous quarters, housing demand concentrated in clusters such as Dwarka Expressway, New Gurgaon and Sohna Road. As a result, Sectors 89, 95 and 99 in New Gurgaon, and Sectors 68 and 69 along the Sohna Road emerged as the top performers with average price growth of 3-5 percent, each, QoQ. Sector 102 along Dwarka Expressway saw prices going up by two percent as a new project by Shapoorji Pallonji dotted its skyline in the quarter.
The resale and the luxury markets continued to remain distraught and vying for homebuyers. However, the premium landscapes - Golf Course Road and Golf Course Extension Road exhibited positive sentiment post the ruling allowing registry of fourth floors in independent houses. The move triggered a wave of redevelopment in these areas, resulting in Sectors 49, 53 and 57 to post a price hike of 1-2 percent, each, QoQ.
While homebuyers remained optimistic about Faridabad’s real estate sector post the expansion of the metro route in the last two quarters, enquiries and sales failed to leave a mark in Apr-Jun 2019. The average weighted property prices in the region dwindled by a percent, QoQ, as homebuyers took to the fence in this politically transitory phase. Sectors 49, 81 and 88, however, managed to post a marginal 1-3 percent hike in average weighted capital values, QoQ. The proposed revival of the Gurgaon-Faridabad metro plan could give the region the required impetus in future.
The rental market in both the zones narrated a merrier tale with Gurgaon and Faridabad posting a three percent and two percent uptick in average rentals, respectively, YoY. Locations close to the DLF Cyber City, and those served by the Gurgaon Rapid Rail remained the most popular amongst the tenant community. DLF City Phase 1, 3, 4, and 5, coupled with Sectors 40, 46, 51, 54, 55, and 56 saw rental ‘asks’ surging by 6-9 percent, YoY.
The realty tale of the Capital city in Apr-Jun 2019 remained largely similar to the previous quarters. Property sales diminished further, prices maintained stance and new launches remained a far sight. With infrastructure projects thriving the market, Dwarka remained at the cynosure of all real estate activity, resultantly seeing a hike in the average prices, albeit by a minimal one percent.
Delhi NCR’s real estate landscape remained plagued by poor offtake in Apr-Jun 2019. This maintained downward pressure on property prices in the city. New launches, too, remained measly and concentrated in the peripheries of the city. Affordable housing continued to be the focus, yet the pain point. Despite nearly 35 percent of the city’s residential supply priced under Rs 60 lakh, a shortfall of almost 15 percent dis-balanced the demand-supply dynamics.
Highlighting a paradoxical situation, prime residential pockets from South Delhi including Greater Kailash I, Jangpura, Jangpura Extension, Lajpat Nagar III, and Okhla posted the maximum price appreciation of four percent each, QoQ. The average weighted capital prices in all these locations range between Rs 18,000 per sq ft and Rs 20,000 per sq ft. The expanding metro network and the aspirational ‘asks’ by the owners are the prime reasons behind the appreciated values.
Dwarka’s residential market continued to shine with almost all sectors posting a 1-3 percent hike in average capital values, QoQ, and up to nine percent increase in the rental rates, YoY. Metro connectivity, proximity to Gurgaon and competitive prices have been the prime factors working in favour of Dwarka. The upcoming Delhi Metro’s Grey Line, which would connect Dwarka and Najafgarh, is slated to open in September this year and promises improved realty scenario in the times to come.
Lacking public transport and connectivity links, majority newly developing affordable locations failed to register healthy buyer traction. Narela, for instance, saw prices dipping by two percent. Kundli remained the only exception with a four percent uptick in prices, QoQ. The completion of the Kundli-Manesar-Palwal (KMP) Expressway fueled growth here; however,
the price variation could only be corrective after a two percent dip in the previous quarter.
RERA’s inefficiency continued to be a growth dampener. However, the quarter was marked by some improvement as the authority launched its RERA portal and resolved 25 complaints of the 70 filed. The number of projects registered under Delhi RERA stood at 16 till June 2019. The city resonates a dire need to up the ante on RERA’s front. Any progress towards faster registration of projects and setting up of an Appellate Tribunal would go a long way in boosting Delhi NCR’s real estate market.